Mitigation of Climate Change (Global Warming Prevention) Mitigation of Climate Change (Global Warming Prevention)

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Materiality for Mitigation of Climate Change (Global Warming Prevention)

Approach to Materiality in Energy

Supervising division CSR & Environmental Affairs Promotion Office
KPI Rate of improvement in per-unit energy consumption
FY2018 target Advantest aims to reduce the rate of improvement in per-unit energy consumption at business locations in Japan by an average of 1% annually (−6% compared to fiscal 2012) through the promotion of efficient energy use.
Results achieved in fiscal 2018 -13.6%
Material reasons Advantest is consuming a lot of energy inside and outside the company for its business activities. Advantest considers efficient energy use an important CSR activity for the global environment.
Boundary Advantest Group (Japan)
Relevant policies Advantest Group Environmental Policy
Relevant commitments Energy Conservation Act
Responsible department/division CSR & Environmental Affairs Promotion Center/Environmental Management Officer
Management resources  
Relevant complaint processing policy (Corporate Ethics Helpline)
Assessment  (Good)

Approach to Materiality in Emissions to the Atmosphere

Supervising division CSR & Environmental Affairs Promotion Office
KPI GHG emissions (Scope 1/2)
FY2018 target Advantest aims to reduce GHG emissions at business locations in Japan through the promotion of efficiency energy use and achieve GHG emissions of 18,000 t-CO2.
Results achieved in fiscal 2018 19,370 t-CO2
Material reasons We consider efforts to reduce the amount of emissions through more efficient energy use as vital because efforts to reduce greenhouse gases that should be conducted worldwide are indispensable in global business activities.
Boundary Advantest Group (Japan)
Relevant policies Advantest Group Environmental Policy
Relevant commitments Act on Promotion of Global Warming Countermeasures
Responsible department/division CSR & Environmental Affairs Promotion Center/Environmental Management Officer
Management resources  
Relevant complaint processing policy (Corporate Ethics Helpline)
Assessment Unachieved
The energy consumption increased mainly due to the effects of super cycle in the semiconductor industry.

Basic Policy

The Advantest Group regards the prevention of global warming as an important corporate mission, and makes efforts to reduce greenhouse gas emission by providing green products and reforming its business processes. We are also promoting medium- to long-term energy-saving measures corresponding to the Act on the Rational Use of Energy (Energy Conservation Law) and related regulations.

Business Risks and Opportunities Brought about by Climate Change

Advantest considers climate change issues, including global warming issues, as global social issues.
Based on the Guidance for Climate-related Financial Disclosure (TCFD Guidance), Advantest has identified environmental risks and opportunities relating to Advantest Group's business activities. Major environmental risks and opportunities are as follows. Advantest will continue to disclose mid- and long-term business strategies relating to the risks and opportunities brought about by climate change, as well as the financial impact of climate change in more details.

Major Risks Brought about by Climate Change

To reduce the risk of costs increasing as a result of taking measures against climate change and the risk of the operation environment deteriorating due to the rising temperature and increasing natural disasters, Advantest is making efforts to ensure compliance with environmental regulations and to minimize damage through the business continuity plan (BCP).

Category Major risks brought about by climate change
Transition risks
  • Increase of procurement, manufacturing, equipment, logistic, and other costs due to regulatory tightening accompanied by climate change
  • Cost increases caused by new taxes such as carbon tax and green power certificate
  • Increase of energy cost caused by procuring renewable energy
  • Increase of insurance cost caused by increasing natural disasters and increasing damages
  • Decrease of product competitiveness and product demands due to changing market needs
  • Cost increases caused by the need to calculate and disclose the environmental impact of products, such as the fact that they save energy
Physical risks
  • Relocation of factories and business facilities as a result of global warming
  • Cost increases caused by replacing cooling media used mainly for air conditioning equipment and chillers with substitutes
  • Inability to continue business operations due to floods, typhoons, and other natural disasters caused by climate change
  • Discontinuation of the supply of parts and product manufacturing activities due to large-scale natural disasters

Major Opportunities Brought about by Climate Change

Advantest is implementing its business strategies aimed at expanding the market for green products and measuring products related to the environment.

Category Major opportunities brought about by climate change
Opportunities
  • Contributing to reducing users' environmental impact through the provision of green products
  • Expanding the market for green products and measuring products related to the environment
  • Becoming more competitive through the technical innovation of environmental performance
  • Enhancing corporate values through the global implementation of environmental conservation activities and the disclosure of the results of these activities

Advantest's Achievements in Relation to CO2 Emissions in FY2018

Advantest is working to simultaneously save energy and reduce costs through more efficient production and elimination of waste. In our buildings, we are optimizing air-conditioning and other systems and replacing superannuated equipment with more efficient models, as well as implementing appropriate lighting levels and switching to LED illumination.
Advantest's total annual electric power consumption in fiscal 2018 was approximately 2,591 MWh higher than in the previous year. The main factors behind this were as follows. Increases in production activities led to an annual increase of around 2,058 MWh at our factories and there was an annual increase of around 533 MWh at development and other sites. A decrease in overtime, shortening of the periods for which air condition equipment is in use, and renewal of aging equipment led to an annual reduction of around 12 MWh and the transition of lighting fixtures to LED led to an annual reduction of around 81 MWh.
Energy consumption also increased as a result, but the rate of improvement in per-unit energy consumption* was down by 13.6% compared to fiscal 2012 due to vast improvements in energy efficiency in production processes.

Advantest will continue its efforts to reduce CO2 emissions from the perspective of waste elimination, aiming to simultaneously save energy and reduce costs.

Important measures implemented in FY2018
  • Transition of lighting fixtures to LED (approximate total of 885 lights at all business locations)
  • Renewal of aging air-conditioning equipment (Gunma R&D Center)
  • Renewal to high-efficiency transformers (Gunma Factory)
  • Optimization of operating hours of air conditioning equipment (all business locations)

Reduction of power consumption through the introduction of outdoor LED lighting

Advantest replaced aged outdoor lighting equipment with LED lighting equipment at Gunma Factory and Saitama R&D Center, thereby reducing the annual energy consumption by 20 MWh

Rate of improvement in per-unit energy consumption

Scope: Eight bases in Japan (including affiliates)

Rate of improvement in per-unit energy consumption
  • By introducing energy-saving equipment and promoting the efficient utilization of energy, we aim to achieve an annual average improvement of 1% in per-unit energy consumption at Advantest business bases in Japan.
    (Compared to the reference year of fiscal 2012, 6% or more reduction in fiscal 2018 and 7.73% or more by fiscal 2020)
  • The unit energy consumption has been set to a value for each business establishment closely related to energy consumption, including the production volume as well as the number of employees and working hours at each site.
CO2 emissions (Scope 1) Third-party assurance

*CO2 emissions from company-owned vehicles are disclosed separately.
*FY2018 figures are assured by KPMG AZSA Sustainability Co., Ltd.

Third-party assurance
Total CO2 emissions (Scope 1) in Japan and Overseas (t-CO2) FY2014 FY2015 FY2016 FY2017 FY2018
3,755 3,726 3,730 3,672 4,374

*FY2018 figure is assured by KPMG AZSA Sustainability Co., Ltd.

CO2 emissions (Scope 2) Third-party assurance

*FY2018 figures are assured by KPMG AZSA Sustainability Co., Ltd.

Third-party assurance
Total CO2 emissions (Scope 2) in Japan and Overseas (t-CO2) FY2014 FY2015 FY2016 FY2017 FY2018
30,845 28,769 30,608 31,596 33,713
Calculation of GHG
  • The emission factor used is based on the Mandatory Greenhouse Gas Accounting and Reporting System.
  • The emission factor associated with the use of electricity is the emission factor for each site in Japan. However , overseas sites use 0.000375t-CO2 / kWh in or before FY2017 while emission factor associated with the use of electricity for each site is used in FY2018.
  • CO2 emissions reduction value based on Tradable Green Certificates is not included.

*FY2018 figure is assured by KPMG AZSA Sustainability Co., Ltd.

CO2 Emissions Attributable to Product Delivery (Scope 3)

When delivering its products, Advantest makes use of product packaging and mode of transport that take into account the needs of handling and shock-resistance. The total CO2 emissions deriving from product delivery in fiscal 2018 was 276 t-CO2. The increase in CO2 emissions was mainly attributed to an increase in the transport distance due to an increase in the number of system products shipped. Advantest will continue to monitor the data relating to product delivery, and will calculate and improve CO2 emissions.

Important measures implemented Due to the fact that Advantest's products are precision machinery that cannot be transported in ordinary cargo containers and cannot be transported together with other products, Advantest is implementing the following measures:
  • Optimization of product packaging (cost reduction and packaging size reduction)
  • Provision of training in safe driving and energy-saving driving
  • Strict enforcement of the requirement that delivery drivers must not allow their engines to idle unnecessarily when stopped for more than a few seconds
  • Shifting over to the use of hybrid vehicles and high fuel efficiency vehicles
  • Use of freight containers (implemented since FY2018)
Trends in CO2 emissions attributable to product delivery (Scope 3) Third-party assurance

The total given includes CO2 emissions deriving from the delivery of products within Japan
Delivery to locations specified by customers (such as factories, airports and harbor facilities) using special trucks

*FY2018 figure is assured by KPMG AZSA Sustainability Co., Ltd.

CO2 Emissions Attributed to Corporate Vehicles (Scope 1)

Advantest and its affiliates use around 100 corporate vehicles in operations in Japan.
The annual CO2 emissions deriving from operations in fiscal 2018 was 115 t-CO2.

Trends in CO2 emissions attributed to corporate vehicles (Scope 1)  Third-party assurance

*FY2018 figure is assured by KPMG AZSA Sustainability Co., Ltd.

GHG Emissions due to Non-Energy Related Activities

Advantest uses dry etching of semiconductors in some of the processes at business establishments in Japan.
In FY2018, GHG emissions for PFCs and SF6 combined was 156 t-CO2e.

Third-party assurance
Items Scope FY2014 FY2015 FY2016 FY2017 FY2018
GHG emissions due to non-energy related activities (t-CO2e) PFCs 362 269 268 47 9
SF6 2,022 816 671 292 146
Total 2,384 1,085 939 339 156

*Data range for tabulation: Advantest Group (Japan) data

*Calculations have been carried out based on the GHG Emissions Calculation and Reporting Manual since FY2018.

*Prior to fiscal 2017, usage was recorded as emissions.

*FY2018 figures are assured by KPMG AZSA Sustainability Co., Ltd.

Value Engineering (VE) Proposal Program

Advantest has a VE proposal system in which Advantest recognizes activities that contribute greatly to the reduction of CO2 emissions mainly through measures such as labor reduction, lead time reduction, and energy-saving products.

Carbon Offset

Advantest does not currently engage in emission trading of GHG emissions.

Measure to Use Solar Panels for Lighting in Employee Parking Lots at Locations in Japan

LED lights that use power generated by solar panels are employed at the Gunma R&D Center for lighting at night in employee commuter parking.

Measures Relating to the Use of "Green" Power at Overseas Business Locations

Purchasing of Tradable Green Certificates from Wind Power Generation

Advantest America, Inc. (AAI) continues its serious commitment to the utilization of renewable energy that was started in 2012. In order to reduce the environmental impact of electricity consumption, the company purchases Tradable Green Certificates from wind power generation that cover over 90% of energy use at the office.  AAI has participated in EPA's Green Power Partnership since 2013. The Green Power Partnership is an effort to encourage companies to purchase the renewable energy that EPA is promoting.

  • Amount of Tradable Green Certificate purchases Third-party assurance

    *FY2018 figure is assured by KPMG AZSA Sustainability Co., Ltd.

  • Tradable Green Certificates

Setup of EV Charging Stations

Charging station

Advantest America, Inc. (AAI) has made four Electric Vehicles (EV) charging stations in San Jose, available for all employees to use free of charge. Currently, around 10% of employees are actively using these charging stations, reducing greenhouse emissions by 15 t-CO2 per year.

AAI San Jose's Energy Saving Projects

Facilities with the
latest equipment

Advantest America, Inc. (AAI) replaced its aged air conditioning system with the latest system, which can adjust the temperature evenly throughout the building with digital control. It also repaired and replaced the chillers used by air conditioners and test systems and modified the cooling towers. These activities have contributed greatly to providing comfortable workplaces and reducing energy consumption.

Efforts to Reduce Electric Power Consumption in Germany

LED office lighting

Advantest Europe GmbH (AEG) has replaced fluorescent tubes with LED bulbs at all its German offices to successfully reduce annual electricity consumption for lighting by 50%, which is approximately 790,000 kWh. At the Amerang office, the roof was replaced with the latest design with a thick heat insulator resulting in a 5% reduction of heating and air-conditioning costs for the factory building. Ongoing improvement efforts have been producing positive results not only for costs but also for the environment